Report on Electronic Toll Collection --「Public Participation in Build and Operate Project for Electronic Toll Collection System on Freeways」

To implement equity and consistency in toll fees, to respond to the expectation of freeway users and to avoid the collapse of toll collection system, Taiwan Area National Freeway Bureau, MOTC (hereinafter referred to as TANFB) began to design the transition from flat-rate toll collection to distance-based toll collection. Moreover, TANFB planned to implement of electronic toll collection (ETC) in replacement of the manual flat-rate toll collection in order to reduce the manpower and use of land for toll stations and, thereby improve the toll collection efficiency of freeway through electronic toll collection. In consideration of improving administrative efficiency, TANFB launched Electronic Toll Collection (ETC) by BOT in 2003, when the government proposed “Private Participation in the Deployment and Operation of Freeway Electronic toll collecting system (hereinafter referred to as the Project)” and designated private-sector companies to establish and operate electronic toll collection (ETC) system. Through such approach, the creativity and efficiency of private-sector companies can be introduced to expedite the overall project promotion.
FETC(Far Eastern Electronic Toll Collection Co., Ltd.) was awarded a project on April 27, 2004, by the Taiwan Area National Freeway Bureau of the Ministry of Transportation and Communications for the implementation of the electronic toll collection systems on freeways. On February 10, 2006 at 2 pm the electronic system officially started collecting tolls on a per-time basis, officially ushering in the operational testing period for the build and operate project for electronic payment of tolls. Initially, toll station lanes for toll station in both directions on Freeway No. 1 and Freeway No. 3 were opened to large and small vehicles for electronic payment of tolls. In the future, depending on the usage rate for electronic payment of tolls, lanes for electronic payment of tolls will be increased to satisfy the needs of more users. As of December 31, 2006, a total of 249, 543 vehicles including 24, 555 large vehicles and 224, 988 small vehicles were equipped with OBUs (On Board Units), and ETC had been used a total of 53.84 million times.
In view of helping the public acquaint and get accustomed to the new electronic toll collecting system gradually, TANFB adopted a two-step transition and introduced a co-existing process of electronic toll collection and manual toll collection in February, 2006. After the freeway users gradually adapt to the new toll collection model and familiarize with electronic toll collecting and thus resulted in significant increase in ETC utilization rate, TANFB transformed the flat-rate toll collection seamlessly into a system with distanced-based all-electronic toll collection on December 30th, 2013. TANFB has spent over a decade’s time to promote electronic collection policy and communicate with the public to successfully implement the “pay-as-you-go” tolling system, a concept of equity payment.
Between February 2006 and December 2013, the energy-conservation effect ETC in Taiwan has created (including reduced carbon emission, fuel consumption and travel time plus cost for printing toll tickets) in distance-based toll collection was estimated to equals to USD$180 million. Additionally, after implementing electronic toll collection and dismantling toll stations, vehicles traveling on freeways no longer need to slow down to pay tolls. It is estimated that the effect of energy-saving and carbon reduction as a result of implementing distance-based electronic toll collection in 2017 has reached an amount as high as USD$80 million each year.